AGRICULTURAL INPUT SUBSIDIES IN INDIA
Journal Title: PARIPEX-Indian Journal of Research - Year 2018, Vol 7, Issue 6
Abstract
Indian government providing income support to the agricultural sector and larger food self-sufficiency for poor consumers. Thegovernment of India uses several of policy instruments to achieve those goals. Domestic subsidies to inputs, outputs, storage and consumption to reduce producer costs of production and consumption prices, and transportation. Such as subsidies measures thetariffs, quotas and non-tariff measures to protect the domestic producers from import competition, manage domestic price levels and domestic supply. Since the input subsidies are one of the most expensive aspects of India's food and agriculture policy regimerequiring a steadily larger budget share. Indian government gives input subsidies to agricultural sector in an attempt to keep farm costs low and production high. The main intension of Indian government is for the farmers to benefit from/lower cost, but also forthem to pass some of the savings on to the consumers in the form of lower than food prices. The Indian government pays fertilizerproducer directly in exchange for the companies selling fertilizer lower than market prices. Irrigation and electricity, on the other hand, are supplied directly to farmers by government at price that is below the cost of production. The input subsidies can alsoproduce unintended effects and growth in non- product specific support. In this present study examine the input subsidies andgrowth in non-product support (power, fertilizers, irrigation) in 1980-81 to 2020-2021. Result of this study is growth in nonproduct support was increasing significantly. This study based on secondary data collected from various report, ministry ofstatistics, ministry of agriculture, ministry of agriculture and farmer welfare, directorate of economics and statistics, ministry offinance. Suggest government policy in this study.
Authors and Affiliations
Dr Baasavaraj S Benni, Shilpa Sree R
Keywords
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